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Case study no 6- The Pepsi machine

Executive Summary:

Case Introduction & Organization
• PepsiCo, Inc. is one of the most successful consumer products companies in the world, with 2000 revenues of over $20 billion and 125,000 employees.
• We have always known Pepsi and Coca Cola to be fighting the so-called cola-wars, where the quickest, sharpest and the best always won in whichever market they were competing in.
• This case study shows us how Pepsi overcame their competitor by completely focusing their control on other aspects of the company rather than just the beverage divisions.
• Instead of fighting Coke heads on, they decided to enter more upcoming markets of health-based drinks and foods, which could enable them to increase their market share.
• Their food-division seemed to be the first stop because they never gave it the attention that it deserved since they were always involved in battles with Coke in its soda beverage division.
• Pepsi owns many brands under its wings such as Frito-Lay, Quaker Oats Aquafina, Gatorade, and a strategic alliance with Starbucks where they manufacture bottled coffee.
• Through these brands, they have been able to diversify their products into the market and have been able to beat Coke in terms of global sales, operating profit and net profit.
• PepsiCo brands are among the best known and most respected in the world and are available in about 190 countries and territories.

Annexure: Additional research.

Top Management:

• The top one of fifty most talented executives of the company, Roger A. Enrico, demonstrates his excellent ability of leadership as representing the company to show the Wall Street that PepsiCo can deliver superior performance quarter after quarter.
• One of Enrico's top priorities is to attract more investors into the stock.
• In international markets, Enrico still faces several obstacles in building Pepsi's soda business; however, he builds up his strategy to place his biggest bets...